For people on the lookout for a less taxing source of extra cash flow, having a passive income is a very attractive idea. Before the Internet became a thing, the first things that came to mind when “passive income” was mentioned were classic investments in rental properties, dividend stocks, and bonds. But not long after the birth of the World Wide Web, another passive income source, affiliate marketing, was developed from the concept of revenue sharing or getting commission from business referrals. As a result, this concept was then applied to the budding ecommerce industry abetted by affiliate marketing software.
By 1996, Amazon adopted the same practice by launching its associate program, which became one of the largest and most popular affiliate marketing programs known to date. In this article, we will share with you some of the most recent affiliate marketing statistics that showcase how it has grown into one of the most profitable passive income sources for affiliate marketers, becoming an effective marketing tactic for driving sales and generating revenue for businesses.
Affiliate Marketing Statistics Table of Contents
General Affiliate Marketing Statistics
First off, let’s define affiliate marketing meaning briefly: put simply, it is a marketing arrangement by which an online retailer pays commission to an external website for traffic or sales generated from its referrals. Since its inception, affiliate marketing has penetrated various industries rather quickly and has risen to mainstream status. In this section, let us take a look at its general landscape through the affiliate marketing statistics we have gathered and shared below.
- Affiliate marketing spending in the United States reached $6.8 billion in 2020. (Web Market Support, 2021)
- 16% of ecommerce sales in the US and Canada are generated via affiliate marketing. (Hallur, 2021)
- 81% of brands use affiliate programs. (Nikolovska, 2021; Web Market Support, 2021)
- 24% of affiliate marketers’ revenue is generated from the telecom and media niche. (Hallur, 2021)
- The United States accounts for 68.83% of affiliate marketers’ traffic source, followed by Europe with 13.39% and the United Kingdom with a traffic share of 4.46%. (Hallur, 2021)
- 18.7% of affiliate programs fall under the fashion category followed by sports (14.6%) and beauty and health/wellness (11.1%). (99firms Content, 2021)
- 38% of marketers agree that affiliate marketing is one of the best strategies to acquire new customers. (Web Market Support, 2021)
- 16% of online orders are driven by affiliate marketing. (Steward, 2021)
- 15% of digital media revenue is generated by affiliate marketing. (Steward, 2021)
- Marketing affiliate spending is expected to grow by 10% within a two-year period. (Steward, 2021)
- Cash-back and loyalty programs account for 43% of total affiliate sales, followed by voucher codes (30%). (Mediakix, 2020)
- 83% of shoppers said that discount codes can influence their purchasing decisions. (Mediakix, 2020)
- According to Google Trends, the interest in affiliates has increased by 300% and reached its peak popularity in July of 2020. (Google Trends, 2020)
- The impact of affiliate marketing on the US market is estimated to reach $70 billion in sales. (Mediakix, 2020)
- An affiliate marketer can earn as much as $1,000 from a single sale. (Benguesmia, 2020)
Source: Web Market Support 2021
Affiliate Marketing During COVID-19
In this section, we will share some of the statistics that show how affiliate marketing thrives in the middle of a global pandemic. This growth amid an ongoing economic crisis is largely attributed to the surge in online purchases during the lockdown period.
- In 2020, the annual affiliate marketing spending was estimated to be at $12 billion. (SaaS Scout, 2020)
- The US accounts for 39% of the affiliate marketing market share. (SaaS Scout, 2020)
- Over 50% of affiliate marketing traffic is generated from mobile devices. (SaaS Scout, 2020)
- Since April 2020, more than 30% of online shoppers who made their first purchase from a brand used an affiliate link. (Awin, 2021)
- Amazon cut its affiliate program commission rates across categories to as low as 1%. (Christie, 2020)
- The number of affiliate marketing publishers that applied on Amazon increased by 150% in July of 2020. (Awin, 2021)
Statistics on Affiliate Marketing Merchants, Publishers, and Advertisers
Three of the key players that run the affiliate marketing machine are the merchants, publishers, and advertisers. And on this section, let us take a look at how they benefit from being part of this performance-based marketing channel.
- 73% of merchants agree their revenue expectations were met by using affiliate marketing. (Satyanarayana, 2019)
- As of 2021, 81% of marketers are utilizing affiliate marketing to generate more revenue. (Hallur, 2020)
- 65% of merchants can earn up to 20% in annual revenue through affiliate marketing. (Hallur, 2021)
- 91% of merchants carefully and effectively plan their budget for affiliate marketing. (Hallur, 2021)
- Meanwhile, 94% of publishers do not stick to just one affiliate marketing network. (Affise; Nikolovska, 2021)
- According to 76% of publishers, the best benefit of affiliate marketing is it is easy to monetize. (iAffiliate Management; 99firms Content, 2021)
- 20% of publishers’ annual income is generated from affiliate marketing. (Inc.com; 99firms Content, 2021)
- In 2020, ecommerce company Groupon reported $395.6 million in global revenue.
- 90% of advertisers agree that affiliate marketing plays a crucial role in digital marketing strategy. (Hallur, 2021)
- Affiliate programs are responsible for 30% of advertisers’ entire sales. (SaaS Scout, 2020)
- 15%–30% of advertisers’ total sales are generated from affiliate marketing. (Authority Hacker; 99firms Content, 2021)
Top 10 Affiliate Categories by Market Share
Fashion: 18.7
Fashion
%Sports and outdoors: 14.6
Sports and outdoors
%Health, wellness, and beauty: 11.1
Health, wellness, and beauty
%Travel: 8.6
Travel
%Home and garden: 7.4
Home and garden
%Computer and electronics: 5.4
Computer and electronics
%Education and training: 4.3
Education and training
%Business: 4.1
Business
%Finance and insurance: 3.5
Finance and insurance
%High-end and luxury stores: 3
High-end and luxury stores
%Source: AMNavigator; BloggingX
Designed byAffiliate Marketers Statistics
Being an affiliate marketer is an ideal career many would love to have. Unlike regular jobs that usually pay by the hour, affiliate marketing keeps the cash flow running even when the affiliate is asleep. Affiliates also have complete control of their time and the products or services they want to support and gather commission from.
On the other hand, the convenience and the potential income this job offers, being an affiliate is not as easy as it may sound. In this section, we will share some relevant statistics that look into the demographics, income, and preferences of affiliate marketers.
- 54.23% of affiliate marketers are men and 42.97% are women. (Hallur, 2021)
- 31.86% of affiliate marketers are between 35 to 44 years old. (Hallur, 2021)
- The seventh most desired skill set by employers involves affiliate marketing skills. (Awin, 2021)
- 64.48% of affiliate marketers generate the most traffic from quality blog content. (Nikolovska, 2021)
- 18.15% of affiliate marketers agree that relevance is the most important factor to consider when choosing a product. Moreover, the reputation of the affiliate program and the affiliate network should also be taken into consideration. (AffStat; 99firms Content, 2021)
- 51% of affiliates move on to the next option once they get rejected by an affiliate program. (Web Market Support, 2021)
- Only 3.2% of affiliate marketers earn more than $150,000 annually. (Job2Joy; 99firms Content, 2021)
- The majority of affiliate marketers (48.32%) make less than $20,000 a year. (Job2Joy; 99firms Content, 2021)
- 12% of affiliate marketers generate $75,000 in affiliate income alone. (Mediakix, 2020)
- The number of products affiliate marketers prefer to promote falls between 1-10. (99firms Content, 2021)
- 83% of affiliate marketers raise brand awareness through affiliate marketing. (Hallur, 2021)
- 1% to 5% is the average conversion rate affiliate marketers can achieve. (Hallur, 2021)
- 48.69% of affiliate marketers prefer direct payments. (Hallur, 2021)
- 55.5% of affiliate marketers worked from home before the COVID-19 outbreak. (Web Market Support, 2021)
Latest Trends in Affiliate Marketing
Managing and running a successful marketing program requires the capability to keep up with the latest trends not only in technology but also in the factors that influence a consumer’s purchasing behavior. In the list below, we share some of the latest trends in affiliate marketing in 2021.
- Businesses will continue to leverage the marketing opportunities offered by micro-influencers or content creators with less than 100,000 followers. (Hughes, 2020)
- Browser companies are planning to completely get rid of third-party tracking and cookies by 2022. (Schindler, 2020)
- Affiliate content continues to increase and has grown by 175% in recent years. (Mediakix, 2020)
- AI and voice search are two of the biggest trends in affiliate marketing as the number of digital assistant and smart speaker users is expected to reach 6.2 billion in 2022. (Mediakix, 2020; Juniper Research, 2020)
- Cross-promotion between desktop and mobile devices is still a trend because of the traffic volume affiliate marketers generate from mobile devices. (Aguiar, 2020)
- Automation tools will continue to enhance the effectiveness of various marketing processes, including affiliate marketing. (Hughes, 2020)
Source: Statista, 2021
Risks and Challenges of Affiliate Marketing
While affiliate marketing offers great potential for both businesses and marketers, several risks and challenges need to be considered:
- Fraud and Scams: One of the significant risks in affiliate marketing is fraud. Some affiliate marketers may use unethical practices, such as click fraud or cookie stuffing, to artificially inflate commissions. Businesses must ensure that they have robust monitoring systems to detect and prevent fraudulent activity.
- High Competition: The affiliate marketing landscape is highly competitive, particularly in popular niches. Marketers often compete for the same audience and traffic, making it harder to stand out. Success requires creative strategies, effective SEO, and building strong relationships with the audience.
- Dependence on Affiliate Programs: Affiliates are dependent on the affiliate programs they join. If a program changes its commission structure, terminates the program, or enforces stricter terms, it can significantly affect the affiliate’s income. This lack of control over the program can be a risk for marketers who rely heavily on one affiliate program.
- Commission Delays: Affiliate marketers may face delays in receiving payments. Some affiliate programs have long payout periods or require a minimum threshold to be met before payments are issued. This can cause cash flow issues for marketers who depend on regular earnings.
- Changes in Algorithms and Search Engine Policies: Search engines, especially Google, frequently update their algorithms. These changes can affect the visibility of affiliate links in search results, potentially decreasing traffic and earnings. Affiliates must adapt to these shifts, often by optimizing their strategies to meet new SEO standards.
- Lack of Control Over Product Quality: Affiliate marketers rely on the products or services of their partners. Suppose the product quality declines or customer service issues arise. In that case, it reflects poorly on the affiliate, which can lead to losing trust with their audience and reduced conversions.
How affiliate marketing can help businesses recover?
After surviving the worst of the COVID-19 pandemic, affiliate marketing is now seen by some of the businesses as a key to their recovery. For instance, the marketing initiatives of retailers before the pandemic were spread across different strategies such as social media, retargeting, paid search, etc. However, after COVID-19 struck, retailers shifted their marketing focus to performance-based channels like affiliate marketing.
For businesses who are still in the process of getting their footing back, affiliate marketing can be an ideal option as it is not only less complicated to purchase but has also been proven to be highly effective in increasing conversion rates.
Key Insights
- Surge in Affiliate Marketing: Affiliate marketing spending in the United States reached $6.8 billion in 2020, demonstrating its significant growth and impact on the ecommerce landscape.
- Effectiveness During COVID-19: Affiliate marketing thrived during the pandemic, with a notable increase in online purchases driven by affiliate links and mobile device traffic.
- Diverse Industry Penetration: Affiliate marketing spans multiple industries, with significant contributions from fashion, sports, beauty, and health/wellness sectors.
- Merchant and Publisher Benefits: A large percentage of merchants and publishers rely on affiliate marketing for substantial revenue, with many meeting or exceeding revenue expectations through this channel.
- Demographics of Affiliate Marketers: The majority of affiliate marketers are men aged 35 to 44, with significant contributions from blog content driving traffic and conversions.
- Revenue Potential: While the majority of affiliate marketers earn less than $20,000 annually, a small percentage can earn over $150,000, indicating the varied income potential in this field.
- Trends in Affiliate Marketing: The rise of micro-influencers, the phasing out of third-party cookies, and the integration of AI and voice search are shaping the future of affiliate marketing.
FAQ
- What is affiliate marketing?
Affiliate marketing is a marketing arrangement where an online retailer pays commission to an external website for traffic or sales generated from its referrals. - How much did affiliate marketing spending reach in the US in 2020?
- Affiliate marketing spending in the United States reached $6.8 billion in 2020.
- What percentage of ecommerce sales in the US and Canada are generated via affiliate marketing?
16% of ecommerce sales in the US and Canada are generated via affiliate marketing. - How did the COVID-19 pandemic affect affiliate marketing?
During the COVID-19 pandemic, affiliate marketing saw a surge in activity, with a significant increase in online purchases driven by affiliate links and mobile device traffic. - Which industries benefit the most from affiliate marketing?
The top industries benefiting from affiliate marketing include fashion, sports, beauty, health/wellness, travel, home and garden, and electronics. - What are the key demographics of affiliate marketers?
Most affiliate marketers are men aged 35 to 44, with a significant portion generating traffic through blog content. - What is the average income for affiliate marketers?
The majority of affiliate marketers make less than $20,000 a year, but some can earn over $150,000 annually. - How do merchants and publishers benefit from affiliate marketing?
Merchants and publishers benefit from affiliate marketing by generating substantial revenue, with some merchants earning up to 20% of their annual revenue through affiliate programs. - What are the latest trends in affiliate marketing?
Latest trends in affiliate marketing include the rise of micro-influencers, the elimination of third-party cookies, the growth of affiliate content, and the integration of AI and voice search technologies. - How can affiliate marketing help businesses recover from the COVID-19 pandemic?
Affiliate marketing can help businesses recover by providing a performance-based marketing channel that is less complicated to purchase and effective in increasing conversion rates, making it an ideal option for businesses looking to regain their footing.
References:
- Affiliate Royale. 6 affiliate marketing trends for 2021. (2020, December 29). Affiliate Royale.
- 99firms Content. (2021, January 8). Affiliate marketing statistics. 99firms.
- Affiliate Marketer Training. (2017, January 12). A history of affiliate marketing. Affiliate Marketing Training. Retrieved April 8, 2021.
- Aguiar, J. (2020, February 20). 21 experts on the top affiliate marketing trends for 2020. Mobidea Academy.
- Awin. (2021, April 5). Awin report 2021: Affiliate marketing 2020 in review. Global Affiliate Marketing Network | Awin.
- Benguesmia, A. (2020, June 14). 19 little-known affiliate marketing programs (Up to $8K per sale). Bengu.
- Christie, D. (2020, April 16). Report: Amazon cuts affiliate commissions across categories. Marketing Dive.
- Gawron, K. (2021, January 1). Affiliate marketing trends for 2021 — the new beginning. Zeropark Blog.
- Hallur, A. (2020, June 12). 75+ shocking affiliate marketing statistics in 2021. BloggingX.
- Juniper Research. (2020, April 28). Juniper research: Number of voice assistant devices in use to overtake world population by 2024, reaching 8.4bn, led by smartphones. Businesswire.
- Mediakix. (2020, September 25). The top 30 affiliate marketing statistics every marketer must know. Mediakix.
- Nikolovska, H. (2021, January 8). 21 astonishing affiliate marketing statistics. TrueList.
- SaaS Scout. (2020, November 9). 2020 affiliate marketing statistics & trends globally. SaaS Scout (formerly SoftwareFindr). Retrieved April 7, 2021.
- Satyanarayana, A. (2019, September 12). Affiliate marketing statistics: Embrace the potential of partners. Fetchprofits.
- Schindler, M. (2020, December 30). Affiliate marketing in 2021: Trends, insights, and tips. Voluum Blog.
- Singla, A. (2020, February 28). 104 affiliate marketing statistics for digital marketers (2021). Master Blogging.
- Steward, J. (2021, April 15). The ultimate list of affiliate marketing statistics 2021. Findstack.
- Web Market Support. (2021, April 13). ‘Hot’ affiliate marketing statistics for a winning strategy. Web Market Support.
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